As the world is moving towards the fourth industrial revolution, financial businesses are facing an excessive increase in customer acquisition costs and stringent regulatory compliance. Banks and financial institutes with their identity verification methods are experiencing hefty fines for violating the KYC and AML compliance. It is eventually leading to significant brand damage escalating to temporary or even permanent cessation.
Multiple incidents regarding compliance violations are being reported in the financial market. Nevertheless, the entire financial infrastructure is lacking an efficient solution that can solve this arising problem.
How ID verification services can get Financial Institutions out of harm’s way?
For many, the subject of online ID verification isn’t something discussed daily. Unless a person is not directly involved in identity access at work. However, with an increase in data breaches and identity theft occurrences in the world, it is perhaps time financial institutes take ID verification software seriously.
- With the advancements in technology, payment fraud attacks are increasing in complexity. These attacks normally have a digital footprint or sequence which makes them undetectable using predictive models alone. ID verification APIs plays its role to mitigate these kinds of attacks and provide a security layer to the bank.
- Through the use of ID verification software, payment fraud can be detected swiftly even on a large scale. This is how ID verification provides an immediate advantage to financial institutes in battling the many risks and methods of fraud.
- ID verification assist in onboarding real customers and keeping fake and fraudulent people away.
- Mobile Banking, which is becoming popular nowadays could be benefitted a lot with online identity verification services. Since mobile banking is based on Customer Not Present phenomena, businesses could use online identity verification services to ensure that no wrong person gets access to their system.
In the world, where ID verification has become necessary for purchasing goods and services. Hackers and criminals could easily get access to identity information, which will be devastating. Especially, in the financial sector, the business conducted involves money and criminals could ruin a customer’s credit history and reputation through credit card fraud and other fraudulent activities.
The prevalent solution to avoid being victims of such fraudulent activities is to engage a robust ID verification system. A strong ID verification operation keeps criminals out of the system and helps onboarding real customers.
How Online ID verification works?
Online ID verification is the process of verifying an individual’s identity in real-time using artificial intelligence. Systems backed with Artificial Intelligence (AI) and machine learning is used to verify the identity of a person in real-time. With fast-paced technology, the ID verification process only takes 30-60 seconds on average. This helps in maintaining a good customer experience with a probability of identifying more criminals in less time.
The process of online identity verification is simple. By using a camera, the consumer can upload proof of their identity. The most popular is using a government-issued ID card and the technology solution will scan this ID document to fetch required details such as age and name of the consumer and verify if the person meets the identity requirement for the product. These Identity verification solutions also check whether the uploaded document is original or not.
Identity verification systems also provide some additional ways like facial recognition for verification. In facial verification, the end-user will upload a government-issued document with a picture of themselves. The system will match the picture on the document with the user’s picture.
In order to avoid financial fraud and other criminal activities related to identification, financial institutes should utilize digital ID verification systems. Not only will it deter fraud but it will also help in maintaining the integrity of financial institutes.